Request of Consumers Energy Company for Routine True-up Adjustment of Power Plant Securitization Charge

A CMS Energy Company June 14, 2016 David G. Mengebier Senior Vice President Governmental and Public Affairs Sally L. Wallace Executive Secretary Michigan Public Service Commission 7109 W. Saginaw Highway Post Office Box 30221 Lansing, MI 48909 Re: Request of Consumers Energy Company for Routine True-up Adjustment of Power Plant Securitization Charge Dear Ms. Wallace: In accordance with the December 6, 2013 Opinion and Order of the Michigan Public Service Commission ( MPSC or the Commission ) in MPSC Case No. U-17473 ( the Financing Order ), Consumers Energy Company ( Consumers Energy or the Company ) hereby submits for the Commission s review and approval its 2016 annual routine true-up adjustment to the current Power Plant Securitization Charge. This request is filed pursuant to ordering paragraph H of the Commission s December 6, 2013 Financing Order, supra, which provides: True-ups of the securitization charges shall be conducted periodically, in accordance with the schedule and methodology approved in this order. Mid-year true-up results may be implemented immediately for any mid-year true-up that is uncontested. Order, page 64. The Commission memorialized the true-up filing requirement in Rule C9.2 of the Company s electric tariff book, as follows: True-ups are required annually, as set forth in Act 142 to correct any overcollections or undercollections of the preceding twelve months and to ensure the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the securitization bonds, and also required on a semi-annual basis (quarterly beginning one year prior to the last scheduled final payment) if the servicer One Energy Plaza Jackson, MI 49201-2357 Tel: 1 800 477 5050 www.consumersenergy.com

determines that a true-up adjustment is necessary to ensure the expected recovery during the succeeding annual period of amounts required for the timely payment of the Issuer s debt service and operating costs. In addition, true-ups are permitted more frequently at any time the servicer determines that a true-up is needed for this purpose. Adjustments shall be calculated in the manner set forth below in accordance with the terms of the Order: Next Period's Required Securitization minus [True-Up Period's Actual Securitization Revenue minus True-Up Period s Actual Securitization Costs] equals Next Period s Securitization Charge Spread to each Rate Class based on the 4CP 50/25/25 Allocator from Case No. U-17087 then Divided by Next Period's Forecast Sales In accordance with those provisions, Consumers Energy has attached to this letter Attachments A through C. Attachment A reflects the routine true-up adjustment formula approved by the Commission in the December 6, 2013 Financing Order issued in MPSC Case No. U-17473 and shows the computation of the proposed adjustments to the Power Plant Securitization Charge currently in place. Attachment A demonstrates, pursuant to the December 6, 2013 Financing Order, supra, how the proposed revision of the securitization charges will ensure the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the securitization bonds for the period August 2016 through July 2017 and shows the computation of the proposed adjustments to the securitization charge currently in place. Further supporting details can be found within. Attachment C is the Company s proposed new tariff reflecting the Power Plant Securitization Charges after the true-up. For all of the reasons stated herein, Consumers Energy hereby respectfully requests the Commission to review and approve on an expedited basis the computations contained in the attachments hereto consistent with the requirements of Section 10k(3) of Act 142, MCL 460.10k(3), the December 6, 2013 Financing Order issued in MPSC Case No. U-17473 and Rule C9.2 of the Company s electric tariffs. Consumers Energy further requests that the Commission timely approve this request so that the new securitization charges shown on Attachment C become effective for bills rendered on and after the August billing month. It is anticipated that the newly-approved securitization charges will remain in effect until a change is authorized by the Commission in a future true-up proceeding. Upon the Commission s approval, Consumers Energy will file updated tariff sheets associated with implementing the approved charges. One Energy Plaza Jackson, MI 49201-2357 Tel: 1 800 477 5050 www.consumersenergy.com

Respectfully submitted, By David G. Mengebier Senior Vice President Governmental and Public Affairs cc: Bill Stosik, MPSC Staff Bob Nichols, MPSC Staff One Energy Plaza Jackson, MI 49201-2357 Tel: 1 800 477 5050 www.consumersenergy.com

Attachment A Page 1of2 Line Description Amount Source Next Period Required Securitization Revenue 1 Principal Due 2 Interest Due 3 Fees Due (Est) 4 Capital Subaccount Replenishment 5 Total 24,981,899 Page 2 Line 13 9,231,825 Page 2 Line 12 34,674,724 461,000 Page 2 Line 14 Page 2 Line 5 True Up Period Actual Securitization Revenue 6 Cash Collected 35,839,381 Page 1 Line 2 True Up Period Actual Securitization Costs 7 Principal Due 8 Interest Due 9 Fees Due (Est) 10 Capital Subaccount Replenishment 11 Required General Subaccount Funding 12 Total 24,653,271 Page 1 Line 13 9,560,456 Page 1 Line 12 371,228 Page 1 Line 14 73,731 Page 1 Line 5 3,057,151 Footnote 1 37,715,837 13 Next Period Securitization Charge 36,551,180 Line 5 less Line 6 plus Line 12 Footnotes: 1 To allow for fluctuations in sales while still disbur~ing cash at required payment dates, additional cash must be added to the forecasted collections. 2M would represent roughly 6% of total cash disbursements for the year. The amount on line 11 represents the additional cash required to maintain cash levels at or above 2M at all times in the forecast period.

Attachment A Page 2 of 2 Allocated Current Proposed U-17087 Securitization Securitization Securitization Line Rate Cla ss Allocation Charge Amount Sales Rate Charge Charge (a) (b) (c) (d) (e) (f) (g) 1 Residential 42.0% 15,336,875 12,313,472,328 Rate RS 0.001258 0.001246 2 Rate RT 0.001258 0.001246 3 Rate REV-1 0.001258 0.001246 4 Rate REV-2 0.001258 0.001246 5 Secondary 25.3% 9,240,138 7,410,179,286 Rate GS 0.001256 0.001247 6 Rate GSD 0.001256 0.001247 7 Primary 32.4% 11,831,617 13,257,146,352 Rate GP 8 CVLl 0.000910 0.000892 9 CVL2 0.000910 0.000892 10 CVL3 0.000910 0.000892 11 Rates GPD, GPTU, EIP and GSG-2 12 CVLl 0.000910 0.000892 13 CVL2 0.000910 0.000892 14 CVL3 0.000910 0.000892 15 Lighting/Other 0.39% 142,550 234,291,011 Rate GML 0.000566 0.000608 16 Rate GUL 0.000566 0.000608 17 Rate GU-XL 0.000566 0.000608 18 Rate GU 0.000566 0.000608 19 Rate PA NA NA 20 Rate ROA-R NA NA 21 Rate ROA-S NA NA 22 Rate ROA-P NA NA 23 Total 100.00% 36,551,180 33,215,088,977

Page 1 of 15 Total 93,637,802 35,839,381 1,998,629 (34,584,955) (73,731) Total 6,302,604 Total 9,560,456 24,653,271 371,228 34,584,955 MICHIGAN PUBLIC SERVICE COMMISSION U-17473 Secu ritization True Up Forecast of Cash Available to Pay Bond Principal, Interest, and Fees {Current Securitization Rates) Line Actual Actual Au2-lS Seo-15 Actual Actual Actual Actual Oct-15 Nov-15 Dec-15 Jan-16 Actual Actual Actual Actual Feb-16 Mar-16 Apr-16 May-16 Forecast Jun-16 Forecast Jul-16 1 Beginning Cash Balance 2 Cash Collections 3 Excess Funds Subaccount 4 Cash Disbursements 5 Capita l Subaccount Replenishment 6 Ending Cash Balance 11,912,302 14,934,363 3,022,061 3,151,118 (17,500,641) (73,731) 14,934,363 511,109 3,660,326 6,211,222 9,228,875 3,143,648 2,550,896 3,017,653 2,644,480 516,678 3,660,326 6,211,222 9,228,875 11,873,355 11,873,355 15,206,200 4,018,358 3,332,845 3,331,245 2,536,407 2,806,424 1,481,951 (17,084,314) 15,206,200 1,453,131 4,018,358 6,824,782 6,824,782 2,943,236 9,768,018 9,768,018 3,359,368 13,127,386 7 Cash Collections 8 Forecasted/Budgeted Surcharge Revenue 9 Uncollectible Adjustment 10 Total Cash Collections Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Mav-16 Jun-16 2,972,966 0.99 2,943,236 Jul-16 3,393,301 0.99 3,359,368 11 Cash Disbursements 12 In terest Due 13 Principal Due 14 Fees Due (Est) 15 Total Cash Disbursements Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 4,821,802 12,465,990 212,849 17,500,641 Feb-16 Mar-16 Aor-16 Mav-16 4,738,654 12,187,281 158,379 17,084,314 Jun-16 Jul-16

Page 2 of15 Total 117,401,516 36,618,021 (34,674,724) 119,344,813 Total 36,618,021 Total 9,231,825 24,981,899 461,000 34,674,724 MICHIGAN PUBLIC SERVICE COMMISSION Forecast of Cash Ava ilable to Pay Bond Principal, Interest, and Fees (Current Securitization Rates) Line Forecast Forecast Aug-16 Sep-16 Forecast Forecast Forecast Forecast Oct-16 Nov-16 Dec-16 Jan-17 Forecast Forecast Forecast Forecast Feb-17 Mar-17 Apr-17 May-17 Forecast Forecast Jun-17 Jul-17 1 Beginni ng Cash Balance 2 Cash Co llections 3 Excess Fu nds Subaccount 4 Cash Disbursements 5 Capital Subaccount Rep lenishment 6 Ending Cash Balance 13,127,386 16,464,475 3,337,089 3,165,259 (17,316,878) 16,464,475 2,312,856 2,312,856 5,058,759 7,932,758 11,163,652 2,745,903 2,874,000 3,230,894 3,303,666 5,058,759 7,932,758 11,163,652 14,467,318 14,467,318 17,435,455 3,049,022 5,981,605 2,968,137 2,971,414 2,932,583 2,749,214 (17,357,846) 17,435,4S5 3,049,022 5,981,605 8,730,819 8,730,819 11,677,410 2,946,590 3,393,274 11,677,410 15,070,683 7 Cash Collections 8 Fo recasted/budgeted Surcharge Revenue 9 Unco llectible Adjustment 10 Tota l Cash Collections Aug-16 Seo-16 3,370,797 3,197,231 0.99 0.99 3,337,089 3, 165,259 Oct-16 Nov-16 Dec-16 Jan-17 2,773,639 2,903,030 3,263,529 3,337,036 0.99 0.99 0.99 0.99 2,745,903 2,874,000 3,230,894 3,303,666 Feb-17 Mar-17 Apr-17 May-17 2,998,118 3,001,428 2,962,20S 2,776,984 0.99 0.99 0.99 0.99 2,968,137 2,971,414 2,932,583 2,749,214 Jun-17 Jul-17 2,976,354 3,427,S49 0.99 0.99 2,946,590 3,393,274 11 Cash Disbursements 12 Interest Due 13 Prin cipa l Due 14 Fees Due (Est) 15 Total Cash Disbursements Aug-16 Sep-16 Oct-16 Nov-16 De c-16 Jan-17 4,657,362 12,429,016 230,500 17,316,878 Feb-17 Mar-17 Apr-17 May-17 4,574,463 12,552,883 230,500 17,357,846 Jun-17 Jul-17

9 Forecasted Surcharge Revenue 3,330,587 3,173,950 2,740,182 2,867,788 3,224,254 3,296,845 2,961,541 2,964,630 2,925,012 2,742,101 2,938,455 3,385,834 36,551,180 10 Un collectible Adjustment 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 0.99 11 Tota l Cash Collections 3,297,281 3,142,210 2,712,781 2,839,110 3,192,011 3,263,876 2,931,926 2,934,984 2,895,762 2,714,680 2,909,071 3,351,975 36,185,668 MICHIGAN PUBLIC SERVICE COMMISSION Page 3of15 Forecast of Cash Available to Pay Bond {Proposed Securitization Rates) Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Line AU_K-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Total Forecasted Sales 1 Residential 1,178,393,001 1,047,337,899 879,576,199 932,538,246 1,148,103,000 1,230,303,046 1,013,829,587 1,034,207,400 952,163,828 823, 770,249 908,317,733 1,164,932,139 12,313,472,328 2 Secondary 677,980,984 661,790,865 577,121,673 588,336,138 634,465,340 607,458,748 575,747,971 602,519,155 587,250,624 607,066,622 592,478,800 697,962,365 7,410,179,286 3 Primary 1,128,256,030 1,157,426,318 1,022,444,450 1,074,494,013 1,108,068,946 1,112,364,288 1,084,396,964 1,023,041,971 1,115,226,717 1,063,009,329 1,186,705,427 1,181,711,900 13,257,146,352 4 Lighting/Other 17,275,319 18,509,643 20,533,948 22,511,149 23,311,043 23,393,072 21,460,605 19,952,425 18,863,070 17,055,969 15,154,106 16,270,661 234,291,011 Proposed Securitization Rate 5 Residential 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 0.001246 6 Secondary 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 0.001247 7 Primary 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 0.000892 8 lighting/other 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 0.000608 12 Beginning Cash Balance 13,127,386 16,424,668 2,250,000 4,962,781 7,801,891 10,993,902 14,257,778 17,189,704 2,766,842 5,662,604 8,377,284 11,286,355 115,101,195 13 Cash Coll ections 3,297,281 3,142,210 2,712,781 2,839,110 3,192,011 3,263,876 2,931,926 2,934,984 2,895,762 2,714,680 2,909,071 3,351,975 36,185,668 14 Excess Funds Subaccount 15 Cash Disbursements (17,316,878) (17,357,846) (34,674,724) 16 Capital Subaccount Replenishment 17 Ending Cash Ba lance 16,424,668 2,250,000 4,962,781 7,801,891 10,993,902 14,257,778 17,189,704 2,766,842 5,662,604 8,377,284 11,286,355 14,638,330 116,612,139

Principal and Interest Payments 2014-2028 Page 4of15 Tranche A-1 Date Scheduled Payments May-15 13,040,980 Nov-15 12,465,990 May-16 12,187,281 Nov-16 12,429,016 May-17 12,552,883 Nov-17 12,857,903 May-18 12,460,115 Nov-18 12,808,168 May-19 12,847,261 Nov-19 10,850,402 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 May-24 Nov-24 May-25 Nov-25 May-26 Nov-26 May-27 Nov-27 May-28 Tranche A-2 Tranche A-3 Scheduled Scheduled Payments Payments 2,215,378 12,951,643 13,288,462 13,414,574 13,833,679 13,668,375 14,116,119 14,204,729 14,572,748 14,593,726 12,140,566 2,812,592 15,090,820 15,592,836 15,488,020 16,013,433 16,171,375 16,616,309 16,714,614 Total Interest 7,608,617 4,821,802 4,738,654 4,657,364 4,574,463 4,490,735 4,404,973 4,321,864 4,236,433 4,150,742 4,045,560 3,853,746 3,656,944 3,458,274 3,253,398 3,050,969 2,841,909 2,631,537 2,415,715 2,199,582 1,970,166 1,703,964 1,428,906 1,155,698 873,221 587,957 294,846 Total 124,500,000 139,000,000 114,500,000 87,428,039

Pages of 15 Other Professional Fees For The Period Ending December 31, 2016 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Actual Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Total PricewaterhouseCoopers 50,000 50,000 Rating Agency Fees 40,750 40,750 State of Delaware Fees 562 562 Trustee Legal Fees 3,750 3,750 7,500 Independent Managers Fees 7,000 7,000 Servicer Fees 94,500 94,500 189,000 Administration Fees 25,000 25,000 50,000 17g-5 Fees 1,250 1,250 Annual Legal Opinion 4,244 4,244 10-D Filing 325 325 57,000 1,250 128,056 325 40,750 123,250 350,631 Professional fees are entered into the month they were/will be paid ***Please note, PWC fees will be increasing to 52,000 for the 2016 attestation (to be paid March 2017)

Securitization Securitization May-15 6/2/2014 21,346,368 188,486 0.88% Page 6of17 6/3/2014 0 214,512 0.00% 6/4/2014 5,996,717 31,018 0.52% 6/5/2014 9,374,394 78,446 0.84% 6/8/2014 10,309,168 86,992 0.84% 6/9/2014 12,709,625 113,593 0.89% 6/10/2014 18,030,476 155,185 0.86% 6/11/2014 9,284,397 82,219 0.89% 6/12/2014 10,003,437 84,410 0.84% 6/15/2015 11,540,991 98,563 0.85% 6/16/2015 12,403,345 116,868 0.94% 6/17/2015 26,834,611 248,444 0.93% 6/18/2015 7,726,636 65,467 0.85% 6/19/2015 8,529,101 72,685 0.85% 6/22/2015 12,128,715 103,273 0.85% 6/23/2015 10,362,224 91,591 0.88% 6/24/2015 31,122,021 293,503 0.94% 6/25/2015 11,825,390 103,033 0.87% 6/26/2015 21,426,812 266,148 1.24% 6/29/2015 11,983,496 113,207 0.94% 6/30/2015 13,363,338 114,635 0.86% 276,301,262 2,722,278

Securitization Securitization 15-Jun 7/2/2015 40,442,014 372,912 0.92% Page 7of17 7/3/2015 10,575,071 81,577 0.77% 7/6/2015 11,682,039 91,939 0.79% 7/7/2015 17,822,994 142,277 0.80% 7/8/2015 23,370,174 187,063 0.80% 7/9/2015 13,082,736 107, 172 0.82% 7/10/2015 8,626,535 65,722 0.76% 7/13/2015 14,007,768 112,520 0.80% 7/14/2015 17,583,662 142,555 0.81% 7/15/2015 31,370,754 252,925 0.81% 7/16/2015 12,568,567 99,491 0.79% 7/17/2015 9,014,454 69,625 0.77% 7/20/2015 14,551,036 110,367 0.76% 7/21/2015 17,308,035 145,249 0.84% 7/22/2015 32,607,202 270,425 0.83% 7/23/2015 10,007,911 78,994 0.79% 7/24/2015 11,649,230 90,331 0.78% 7/27/2015 11,939,577 97,500 0.82% 7/28/2015 23,678,311 238,756 1.01% 7/29/2015 33,302,437 287,266 0.86% 7/30/2015 8,267,928 64,369 0.78% 7/31/2015 15,125,297 128,465 0.85% 388,583,732 3,237,500

Secu ritization Secu ritization 15-Jul 8/4/2015 27,714,830 221,512 0.80% Page 8of17 8/5/2015 31,466,995 242,443 0.77% 8/6/2015 14,109,376 105,175 0.75% 8/7/2015 11,424,298 87,624 0.77% 8/10/2015 15,599,732 116,890 0.75% 8/11/2015 15,519,622 115,698 0.75% 8/12/2015 30,603,466 234,611 0.77% 8/13/2015 10,811,279 80,358 0.74% 8/14/2015 12,094,083 90,956 0.75% 8/17/2015 15,054,946 113,702 0.76% 8/18/2015 14,706,537 109,070 0.74% 8/19/2015 37,036,405 288,560 0.78% 8/20/2015 12,864,546 95,299 0.74% 8/21/2015 16,978,022 131,258 0.77% 8/24/2015 12,197,932 90,407 0.74% 8/25/2015 15,839,170 119,342 0.75% 8/26/2015 40,732,402 341,350 0.84% 8/27/2015 10,424,067 76,572 0.73% 8/28/2015 23,914,959 239,225 1.00% 8/31/2015 16,162,740 122,009 0.75% 385,255,407 3,022,061

Securitization Securitization 15-Aug 9/2/2015 25,830,084 199,408 0.77% Page 9of17 9/3/2015 13,082,239 102,023 0.78% 9/4/2015 14, 195,021 112,515 0.79% 9/8/2015 14,892,964 117,422 0.79% 9/9/2015 16,595, 114 132,951 0.80% 9/10/2015 42,123,419 335,587 0.80% 9/11/2015 11,381,677 88,698 0.78% 9/14/2015 15,627,964 124,251 0.80% 9/15/2015 15,924, 184 124,986 0.78% 9/16/2015 39, 157,312 313,477 0.80% 9/17/2015 15,299,954 120,542 0.79% 9/18/2015 11,373,360 89,579 0.79% 9/21/2015 17,397,051 135, 128 0.78% 9/22/2015 15,203,640 118,665 0.78% 9/23/2015 38,237, 129 310,967 0.81% 9/24/2015 11,751,098 98,558 0.84% 9/25/2015 14,838, 174 116,248 0.78% 9/28/2015 16,852,814 138,908 0.82% 9/29/2015 13,937,384 112,957 0.81% 9/30/2015 30,683,469 258,248 0.84% 394,384,051 3,151,118

Securitization Securitization Sep-15 10/2/2015 34,580,583 329,556 0.95% Page 10of17 10/5/2015 12,910,252 100,148 0.78% 10/6/2015 19,401,133 153,777 0.79% 10/7/2015 33,115,626 269,432 0.81% 10/8/2015 13,292,350 104,628 0.79% 10/9/2015 16,395,239 129,066 0.79% 10/13/2015 13, 172,725 104,372 0.79% 10/14/2015 19,355,623 155,063 0.80% 10/15/2015 36,601,717 291,529 0.80% 10/16/2015 8,601,801 67,522 0.78% 10/19/2015 14,088,570 110,268 0.78% 10/20/2015 18,109,269 141,669 0.78% 10/21/2015 31,255,379 254,988 0.82% 10/22/2015 9,803,619 76,813 0.78% 10/23/2015 12,792, 141 100,737 0.79% 10/26/2015 12,566,661 100,058 0.80% 10/27/2015 17, 168,711 137,842 0.80% 10/28/2015 38,212,029 363,916' 0.95% 10/29/2015 8,605,872 67,855 0.79% 10/30/2015 10,679,687 84,409 0.79% 380,708,987 3,143,648

Securitization Securitization 11/3/2015 24,201,931 192,827 0.80% Page 11of17 11/4/2015 22,310,558 207,337 0.93% 11/5/2015 12,779,525 112,349 0.88% 11/6/2015 11,733, 150 103,584 0.88% 11/9/2015 11,753,246 104,590 0.89% 11/10/2015 14,214,532 127, 190 0.89% 11/12/2015 24,631,130 224,816 0.91% 11/13/2015 16,216,149 143,767 0.89% 11/16/2015 11, 128,406 101,023 0.91% 11/17/2015 12, 104,541 112,429 0.93% 11/18/2015 23,348 0.00% 11/19/2015 69,410 0.00% 11/20/2015 0 571,332 0.00% 11/23/2015 13,226,614 80,594 0.61% 11/24/2015 12,581,498 74,069 0.59% 11/25/2015 25,307,437 205,618 0.81% 11/30/2015 10,788,013 96,613 0.90% 222,976,730 2,550,896

Securitization Securitization 12/2/2015 0 372,912 0.00% Page 12of17 12/3/2015 9,265,983 171,858 1.85% 12/4/2015 8,630,259 75,268 0.87% 12/7/2015 7,778,314 68,367 0.88% 12/8/2015 14,646,970 128,274 0.88% 12/9/2015 22,880,851 209,586 0.92% 12/10/2015 9,649,676 87,024 0.90% 12/11/2015 10,204,223 88,782 0.87% 12/14/2015 9,431,204 84,212 0.89% 12/15/2015 13,208,665 120,596 0.91% 12/16/2015 23,294,979 219,042 0.94% 12/17/2015 10,565,853 93,583 0.89% 12/18/2015 8,631,063 75,067 0.87% 12/21/2015 6,679, 139 58,081 0.87% 12/22/2015 11,449,900 102,934 0.90% 12/23/2015 28,742,600 278,266 0.97% 12/28/2015 12,070,739 110,214 0.91% 12/29/2015 21,246,701 188,840 0.89% 12/30/2015 44,366,255 484,747 1.09% 272,743,374 3,017,653

Securitization Secu ritization 1/5/2016 31,457,890 276,903 0.88% Page 13of17 1/6/2016 26,640,085 249,246 0.94% 1/7/2016 12,556,376 111,015 0.88% 1/8/2016 11,013,592 98,042 0.89% 1/11/2016 12,549,155 111,784 0.89% 1/12/2016 13,444,862 122,862 0.91% 1/13/2016 22,030,984 205,156 0.93% 1/14/2016 9,587,201 87,739 0.92% 1/15/2016 7,465,959 67,390 0.90% 1/19/2016 10,829,569 97,800 0.90% 1/20/2016 29,091,971 262,962 0.90% 1/21/2016 15,830,145 152,294 0.96% 1/22/2016 8,965,531 81, 184 0.91% 1/25/2016 10,166,378 89,211 0.88% 1/26/2016 11,602,610 105,185 0.91% 1/27/2016 31,721,347 309,470 0.98% 1/28/2016 12,265,556 109,040 0.89% 1/29/2016 11,686,059 107,197 0.92% 288,905,270 2,644,480

Securitization Securitization 2/2/2016 40,135,299 447,136 1.11% Page 14of17 2/3/2016 34,876,390 322, 139 0.92% 2/4/2016 10,227,283 88,327 0.86% 2/5/2016 13,576,485 115,792 0.85% 2/8/2016 13,057,294 112,251 0.86% 2/9/2016 15,686,991 143,555 0.92% 2/10/2016 31,231,033 288, 125 0.92% 2/11/2016 13,405,339 116,005 0.87% 2/12/2016 12,944,279 111,391 0.86% 2/16/2016 13,656,959 118,389 0.87% 2/17/2016 41,812,872 368,794 0.88% 2/18/2016 16,900,803 149,928 0.89% 2/19/2016 9,992,988 87,007 0.87% 2/22/2016 11,296,735 96,701 0.86% 2/23/2016 20,033,020 172,061 0.86% 2/24/2016 32,997,887 299,110 0.91% 2/25/2016 11,491,967 100,075 0.87% 2/26/2016 11,900, 169 101,725 0.85% 2/29/2016 10,921,977 94,334 0.86% 366,145,770 3,332,845

Securitization Securitization 3/2/2016 51,906,771 533,863 1.03% Page 15of17 3/3/2016 10,535,202 89, 190 0.85% 3/4/2016 11,675,413 97,798 0.84% 3/7/2016 14,083,081 131,151 0.93% 3/8/2016 17,775,053 160,361 0.90% 3/9/2016 7, 190,721 61,486 0.86% 3/10/2016 13,820,609 116,338 0.84% 3/11/2016 9,539,626 79,894 0.84% 3/14/2016 12,458,228 105,010 0.84% 3/15/2016 15,674,836 134,851 0.86% 3/16/2016 31,005,260 284,076 0.92% 3/17/2016 9,862,294 83,762 0.85% 3/18/2016 9,352,469 79,193 0.85% 3/21/2016 11,250,374 93,965 0.84% 3/22/2016 15,546,027 130,190 0.84% 3/23/2016 22,745,936 202,389 0.89% 3/24/2016 14,784,022 130,211 0.88% 3/25/2016 10,876, 175 94,623 0.87% 3/28/2016 14,103,500 126,067 0.89% 3/29/2016 9,262,935 80,211 0.87% 3/30/2016 39,451,936 415,187 1.05% 3/31/2016 10,568,565 101,429 0.96% 363,469,033 3,331,245

Securitization Securitization 4/4/2016 19,239,161 164,763 0.86% Page 16of17 4/5/2016 13,404,241 120,025 0.90% 4/6/2016 23,085,487 206,716 0.90% 4/7/2016 9,490,301 82,495 0.87% 4/8/2016 10,391,461 90,792 0.87% 4/11/2016 10,137,628 89,454 0.88% 4/12/2016 12,873,660 116,844 0.91% 4/13/2016 25,588,023 233,180 0.91% 4/14/2016 9,829,094 87,081 0.89% 4/15/2016 9,969,560 87,369 0.88% 4/18/2016 10,266,764 89,713 0.87% 4/19/2016 12,888, 107 115,837 0.90% 4/20/2016 22,751,516 215,362 0.95% 4/21/2016 9,619,037 83,569 0.87% 4/22/2016 9, 113,654 81,047 0.89% 4/25/2016 10,634,418 93,312 0.88% 4/26/2016 13,061,728 116,671 0.89% 4/27/2016 28,767,478 274,794 0.96% 4/28/2016 10,890,337 96,020 0.88% 4/29/2016 10,513,438 91,363 0.87% 282,515,093 2,536,407

Securitization Securitization 5/3/2016 22,711,296 207,793 0.91% Page 17of17 5/4/2016 30,003,595 281,537 0.94% 5/5/2016 8,565,433 71,152 0.83% 5/6/2016 10,695,751 88,921 0.83% 5/9/2016 10,711,258 91,764 0.86% 5/10/2016 15,949,873 138,660 0.87% 5/11/2016 23,974, 150 215,483 0.90% 5/12/2016 22,061,308 266,342 1.21% 5/13/2016 8,557,803 74,738 0.87% 5/16/2016 12,353,397 108,294 0.88% 5/17/2016 14,601,407 133,088 0.91% 5/18/2016 28,936,405 266,913 0.92% 5/19/2016 9,221,876 78,346 0.85% 5/20/2016 9,739,502 78,842 0.81% 5/23/2016 10,386,145 87, 119 0.84% 5/24/2016 12,652,358 109,783 0.87% 5/25/2016 26,033,924 241,103 0.93% 5/26/2016 10,648,308 99,357 0.93% 5/27/2016 6,640,362 56,783 0.86% 5/31/2016 12,524,496 110,406 0.88% 306,968,647 2,806,424

M.P.S.C. No. 13 - Electric Consumers Energy Company (To Reflect Power Plant Securitization True-Up) POWER PLANT SECURITIZATION CHARGE Sheet No. D-5.10 AttachmentC The actual Securitization Charge is authorized pursuant to Rule C9.2, Power Plant Securitization Charge, Initial Implementation and Trueup Methodology. The Power Plant Securitization Charge is billed to all full service customers, shown in the rate schedules identified below, based upon usage. This charge shall be shown separately on the customer's bill. The actual Power Plant Securitization Charge applied to customers' bills is as follows: Rate Schedule Rate RS RateRT Rate REV-I RateREV-2 Rate GS RateGSD Rate GP CVL I CVL2 CVL3 Rates GPD, GPTU, EIP and GSG-2 CVL I CVL2 CVL3 RateGML RateGUL Rate GU-XL Rate GU Rate PA Rate ROA-R Cl) Rate ROA-S CI) Rate ROA-P CIJ Power Plant Securitization Charge (Case No. U-17473) Effective beginning with the August 2016 Billing Month 0.001246/kWh 0.001246/kWh 0.001246/kWh 0.001246/kWh 0.001247/kWh 0.001247/kWh 0.000892/kWh 0.000892/kWh 0.000892/kWh 0.000892/kWh 0.000892/kWh 0.000892/kWh 0. 000608/kWh 0.000608/kWh 0.000608/kWh 0. 000608/kWh NA NA NA NA (I) Customers taking ROA service on December 6, 2013 are excluded from the Power Plant Securitization Charges. This exclusion does not apply to customers first taking ROA service after December 6, 2013 or to customers taking service on December 6, 2013 who discontinue taking ROA service any time after December 6, 2013. Customers who discontinue taking ROA service any time after December 6, 2013 and who return to ROA service will pay the Power Plant Securitization Charges applicable to the customer's otherwise applicable Company Full Service Rate Schedule. Issued XXXXX XX, 2016 by J. G. Russell, President and Chief Executive Officer, Jackson, Michigan Effective for bills rendered on and after the August 2016 Billing Month Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2016 in Case No. U-17473